DEGC: Biz-to-biz initiative led to $926 million in purchases last year

The Detroit Economic Growth Corp.’s program to encourage Detroit-based companies and universities to purchase more goods and services from one another yielded $926 million in such purchases last year.

That’s a 14.4 percent increase from $810 million in the D2D program’s first year in 2013. It started with 15 major Detroit businesses and universities as purchasers; there are now 17.

Nineteen percent, or $177 million, of the 2014 purchases went to Detroit-based construction companies, according to a release.

“Construction projects often create jobs for Detroiters,” Brian Watkins, program manager for D2D, said in a statement. “An increase in spending there is also a sign of Detroit’s overall recovery, and evidence that our program is helping in it.”

D2D is funded by a New Economy Initiative for Southeast Michigan grant and is free for businesses to register. It is modeled after Pure Michigan Business Connect, a Michigan Economic Development Corp.-managed database connecting state-based purchasers and suppliers.

“The survey results show that large institutional buyers are recognizing the capabilities and value that Detroit-based businesses offer them,” said Rodrick Miller, president and CEO of the DEGC. “It also demonstrates the help we are delivering to small businesses in Detroit. The D2D program is identifying new bidding opportunities for them.”